I will start by saying this: These are advanced techniques used by seasoned real estate investors. Failure to research these techniques can result in financial trouble, Please DO NOT hesitate to ask me questions. Your questions will be answered on my blog. For more guided coaching let me know and I will dicuss some options.
There are several basic methods that work for purchasing a home using up to 100% owner financing. There are tale-tell signs that an owner is willing to consider owner financing, such as “motivated seller”. If the property has been on the market for quite some time or if there has been a price reduction.
Some quick tricks are to ask the agent if they are willing to take their commission as a note (small loan). If they are you may be able to negotiate from the stance that you will pay 100% agent commissions. The seller will see more money in their pocket and could come down by 10,000 to 20,000 dollars (less reduction is possible).
You can also ask the seller if they would be willing to take a note on the down payment. If so, all you have to pay are the fees associated with closing cost. Now you have bought your property with little to no money down. Let us keep in mind that you have the cash flow to support those notes. Let us look at some numbers: We will take the $100,000 home I have been using as an example.
“Wait a minute, I thought that down payment was $10,000?”
If you multiply $278 x 36 months, it totals $10,008.
“How did that happen?”
That is for part 2.
Remember, with any and all of these tricks, some people may tell you that it cannot be done…only because they have never done it. And, as always, the worse they will tell you is….”No.”
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- Tags: closing costs, down payment, owner financing, real estate financing
